Election Season -- whether you love or hate politics they are here to stay, at least until November. The presidential election draws extra attention to divisive issues such as the Global economy, the stock market, and unemployment. The election might also cause stress to those who searching for a job or those who work as CPG recruiters.
If you’re nervous about how the election can affect hiring trends, there is good news and bad news. While businesses analyze the fiscal year ahead and company expenditures, discussing hiring plans may be on their agenda. Continue reading to see how this election may affect you in ways you were not expecting.
The Good News
According to a study by the American Institute of CPAs, there will be little election-related impact on hiring or capital expenditures in 2016.
In fact, of the 540 qualified responses from individuals such as Chief Financial Officers, 56% said they plan to continue hiring at their current pace. Surprisingly, only 5% of survey respondents said they plan to reduce hiring before the 2016 Presidential election.
Many articles and industry thought leaders agree that even with uncertainty plaguing the presidential elections most companies are not waiting to hire new talent. This might not be what you expected to hear, but even with the turmoil in the months leading up to the election, the American job market is relatively strong.
In fact, more and more people will be part of a more flexible, remote workforce. The ability to take on remote jobs and projects is partially why unemployment is down. What an employee had to complete in the office in past decades they now can do from their living room across the country. Cloud-based technologies are encouraging this remote workforce, and the election does little to affect this push towards a unique work-life balance.
The Bad News
This might seem like the exact opposite of bad news, but the job market in 2016 is so strong that unemployment is falling below 5% for the first time since 2008. This has serious implications for CPG recruiters.
While unemployment falls, it has a noted impact on the availability of talent and possible job candidates. The shrinking talent pool will make the hiring process longer due to the difficulty of finding an available, qualified individual. The longer and more detailed a hiring process the more resources a company must dedicate to finding an acceptable candidate.
Due to this fact, retention of employees will be critical throughout the election months and the time to follow. As CPG executives become scarce, it is imperative to retain good employees and to defend against companies attempting to bribe your best people to their side.
While the election may have an effect on water cooler gossip and what you watch on the news, it appears that it will not have as drastic of an effect on hiring as many would assume. However, while the election may not be an enormous hiring factor the economy most certainly does. While hiring may not drastically change, retaining happy employees will be crucial to ensure business success throughout the rest of 2016.